Looks like it could be a bug that only happens when a certain Java version is not found:
*is_jython = settings.global_settings.is_jython = 'java' in
sys.platform.lower() or hasattr(sys, 'JYTHON_JAR') or
str(copyright).find('Jython') > 0*
http://code.google.com/p/web2py/source/detail?r=398f46917b468faf67c9b201b505685e0013d9a6&path=/gluon/compileapp.py

